…Overnight (OVN) rate expands by 367bps to 23.3% as debits for the FGN bond auction (N273.63 billion) and net NTB issuance (N250.00 billion)
…Nigeria’s FX reserve declined further this week as the gross reserves level fell by USD10.95 million w/w to close at USD32.85 billion
SAT, DEC 16 2023-theGBJournal| The value of the naira to the dollar appreciated by 1,903 bps to print at N889.86/$ this week at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Total turnover in the market (as of 14 December 2023) fell by 10.2% wtd to USD516.15 million, as trades were consummated within the N475.00 – N1186.00/USD band.
In the Forwards market, the naira rates on the 1-month (-4.6% to N955.43/USD), 3-month (-3.9% to N975.10/USD), 6-month (-1.7% to N1001.41/USD) and 1-year (-2.5% to N1063.94/USD) contracts increased.
This week, the overnight (OVN) rate expanded by 367bps to 23.3% as debits for the FGN bond auction (N273.63 billion) and net NTB issuance (N250.00 billion) mounted pressure on the liquidity in the financial system.
Notwithstanding, the average system liquidity closed higher at a net long position of N19.74 billion (vs. a net short position of N109.30 billion in the previous week) due to DMBs’ participation at the CBN’s SLF window.
Nigeria’s FX reserve declined further this week as the gross reserves level fell by USD10.95 million w/w to close at USD32.85 billion (13 December).
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
